Photo: NACB
Uncovering the Corruption Scheme
As reported: The National Anti-Corruption Bureau of Ukraine (NACB) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) have uncovered an organized criminal group that embezzled funds from Kharkivoblenergo JSC through corrupt procurement of energy equipment. This scheme was active from April to September 2021. We have previously reported on similar corruption cases in the energy sector.
Details of the Corruption Scheme
The head of Kharkivoblenergo JSC ensured the victory of two “favored” companies in tenders for the purchase of 11,904 units of transformer equipment and 79,425 electrical measuring devices. The procurement costs were inflated by 132.5 million UAH, with the prices of certain components increased fivefold.
Participants in the Scheme
The corruption scheme involved the head of the department at the Kharkiv Chamber of Commerce and Industry and an appraiser who facilitated the creation of deliberately inflated expected procurement values to benefit the future winners. This manipulation significantly increased profits from the scheme.
Damages and Scheme Suspension
During 2021-2022, as a result of partially executing the contract for the supply of transformers and meters at inflated prices, Kharkivoblenergo JSC suffered damages totaling 12.5 million UAH. The introduction of martial law and the provision of humanitarian aid, including energy equipment from Ukrainian enterprises and international organizations, forced the scheme participants to postpone the appropriation of the remaining 120 million UAH.
Following procedural actions by NACB detectives at Kharkivoblenergo JSC in early 2023, the scheme’s participants decided to completely halt the plan’s execution and discontinue the contract.
Suspects in the Case
Currently, the following individuals have been notified of suspicion:
- Acting Chairman of the Board of Kharkivoblenergo JSC (2020-2024);
- Head of the Material Support Department of Kharkivoblenergo JSC;
- Head of the Department at the Kharkiv Chamber of Commerce and Industry;
- Private appraiser;
- Head of a commercial enterprise.
This corruption scheme was previously reported by: TimeUkraineIsrael.
